Neon Ltd makes an offer of 1,000,000 ordinary shares to the public. In its prospectus it notes that the shares are to be issued at $1.50 per share. The shares are to be paid in instalments. The first payment, to be made on application is $0.80 and a second amount of $0.20 will be due on allotment. Remaining monies will be called at future dates to be determined.
Applications commence being received on 1 August 2011 and the closing date for applications is 31 August 2011. By the closing date, applications have been received for 1,500,000 shares. To deal with the oversubscription, Neon Ltd has decided to issue shares to all subscribers on a pro rata basis. Shares are allotted on 1 September 2011. All amounts due on allotment are paid by the due date.
A first call for $0.10 is made on 1 November 2011, with the amounts being due by 30 November 2011. A second and final call of $0.40 is made on 1 December 2011. Shareholders of 100,000 shares fail to pay the amount due on the call by the due date and on 31 December 2011 these shareholders have their shares forfeited.
On 1 March 2012 an interim dividend of $10,000 is declared by directors for the remaining shareholders. This dividend is paid on 31 March 2012.
Required:
a) Prepare the accounting journal entries necessary to account for the above transactions and events.
b) Describe the role of, and the interaction of the ASIC, the AASB and the ASX in the regulation of financial reporting in Australia. Include in your answer an outline the regulatory document each of these bodies produce.